Ingenico Elite 510, Elite 730, Elite 770, Elite 780, 510 Supplementary Manual

THE VALUE OF OPEN

BANKCARD PROCESSING

Introducing the merchant bankcard industry to the value of an
open bankcard processing environment.

INTRODUCTION 2
THE MERCHANT BANKCARD INDUSTRY TODAY 3

MARKET TRENDS 3
TECHNOLOGY TRENDS 3

WHY AN OPEN BANKCARD PROCESSING ENVIRONMENT
IS NEEDED 4

COMPONENTS OF AN OPEN BANKCARD PROCESSING
ENVIRONMENT 5

PAYMENT AND WEB-ENABLED TERMINALS 5
IN-STORE TRANSACTION PAYMENT AND VALUE-ADDED

SERVICES 6
AN INDUSTRY STANDARD NETWORK USING PROTOCOLS

SUCH AS TCP/IP 6
THE NEED FOR HIGH SPEED COMMUNICATIONS 7

SUPPORTING THE HOST-LEVEL TRANSACTION AUTHORIZATION,
SETTLEMENT,VALUE-ADDED SERVICES AND FINANCIAL
SERVICES OF PROCESSORS AND FINANCIAL INSTITUTIONS 7

NETWORK SERVICES 8
TERMINAL ASSET MANAGEMENT 8
RECEIPT, SIGNATURE AND IMAGE MANAGEMENT 9
LOYALTY AND GIFT CARDS 9

TOUCH SCREEN AND WEB-BASED TECHNOLOGY 10

PAYMENT AND VALUE-ADDED CUSTOMER SERVICES 10

WHY TOUCH SCREEN TECHNOLOGY 11

AN INTUITIVE USER INTERFACE 11
REDUCES HELP DESK COSTS 11
REDUCES COST OF SALES 11

WEB-BASED THIN CLIENT TECHNOLOGY 12

WHY USE THIN CLIENT TECHNOLOGY 12

A DEVELOPMENT ENVIRONMENT TO SUPPORT AN OPEN
BANKCARD PROCESSING ENVIRONMENT 12

DEVELOPMENT ENVIRONMENT COMPONENTS 12
DEVELOPMENT ENVIRONMENT ATTRIBUTES 13

DEVELOPMENT ENVIRONMENT BENEFITS 13
EMV 13
WHY IS A SMART CARD STANDARD NEEDED? 14
INGENICO IS THE LEADER IN EMV APPROVALS 15
ABOUT INGENICO 16
THE INGENICO VALUE PROPOSITION 16

THE VALUE OF OPEN BANKCARD PROCESSING

Introducing the merchant bankcard industry to the value of an open
bankcard processing environment

1.

Payment & web-enabled
terminals and readers

In-store payment
transaction management
and value-added services
delivery

➥

Thin Client technology

➥

Application portability

➥

Core application

➥

Secure multi-application support

➥

Comprehensive development
environment

➥

Open platform

➥

Debit card conversion

➥

Check conversion

➥

Loyalty and gift cards

➥

Network services and tools

➥

Terminal asset management

➥

Loyalty and gift cards

➥

Receipt, signature and image
management

CREDIT
DEBIT
CHECK
EBT
ACH

INGENICO

We are applying our leadership in secure transaction technology, open
systems, connectivity, multi-application support, multi-lane payment technology
and value-added services to provide proven and robust solutions for the
merchant bankcard industry. We deliver the systems you need today while
positioning for tomorrow’s trends and technologies.

Supporting the transaction
authorization, settlement,
value-added service and
financial service offerings
of our customers

INTRODUCTION

This paper introduces the merchant bankcard
industry to the attributes and value of an open
bankcard processing environment. An open
bankcard processing environment provides
significant benefits to financial institutions,
processors, ISOs and merchants:

• Lowers processor, financial institution and ISO
support and operational costs by standardizing
EFT POS terminal application support and
development.

• Provides the ability to seamlessly integrate new
payment types and terminal technologies into
your merchant terminal offerings.

• Provides the ability to leverage existing
solutions to open new market opportunities for
enterprising processors, financial institutions
and ISOs.

• Provides the ability to introduce and effectively
market value-added solutions to your merchant
base that drive incremental revenue and
customer loyalty for the merchant and recurring
revenue to you.

• Supports and enhances the payment function
at the point of service – faster customer
service, improved ease of use, security and
management of the terminal asset.

This paper presents the components of an
open bankcard processing environment while
also discussing how touch screen, TCP/IP and thin
client technologies can provide added benefit to
financial institutions, processors, ISOs and
merchants. It is brought to you by the leader in
secure transaction solutions, Ingenico.

INGENICO

2.

3.

THE MERCHANT BANKCARD

INDUSTRY TODAY

Market Trends

• Small merchants have the same requirements as
large merchants – the need to operate efficiently,
the need to serve customers quickly, the need to
lower the cost of payment and the need to avoid
fraud.

• Small merchants need customer relationship
management tools to effectively compete against
other small merchants as well as the large
national retail chains.

• Merchant attrition is a tremendous issue for
financial institutions, processors and ISOs.
Retailers have been “conditioned” to look for
the best price and trouble free service. When a
provider fails to give trouble free service, the
retailer will switch networks very quickly. As a
result, financial institutions and processors lack
the ability to differentiate themselves with other
than price and “issue avoidance”.

• Price competition is the primary means of
winning new business, however, pricing is never
a sustainable competitive advantage.

• Processors, financial institutions and ISOs lack
the means to keep in frequent contact with their
merchant customers.

• The primary objective of an EFT POS terminal is
to support the payment process – anything that
delineates from serving the customer will not be
accepted by merchants or those whom directly
support the merchant. However, value-added
services such as messaging, frequency, electronic
gift certificates that complement the payment
processor are positioned for market success.

• Retailers are looking towards their payment
processing provider to update technology for
payment, settlement, and reporting. This includes
Internet access for transaction histories, charge­back requests and other information that a
retailer would like “on demand”.

• Retailers are beginning to request a single image,
regardless of whether the customer shops online
or in the store - integration of the store front and
web based commerce is key.

Technology Trends

• Retailers with integrated payment are slowly
migrating to open systems and industry
standard components such as are used by cell
phones, pagers, palm pilots, ECRs and PCs.
This will lead to adoption of open systems and
industry standards by smaller merchants with
dial payment.

• Proprietary programming languages and
development platforms are giving way to open
environments for EFT POS terminals.

• Smart cards are soon going to make an impact in
our industry – not for stored value as previously
marketed – but for credit and debit transactions
as well as value-added services such as electronic
gift certificate, loyalty and frequency.

• Terminal manufacturers will need to update their
EFT POS terminal offerings to include EMV
approvals if they are going to do business in the
next few years. The leading card associations
will require EMV level I and II approval.

• Terminal manufacturers are examining
technologies such as Bluetooth, USB, touch
screen and TCP/IP – these technologies will
enable processors to implement exciting new
and innovative solutions that help ISOs,
processors and financial institutions churn
the market.

• Processors are going to begin updating
their networks from 1200 and 2400 bps
communication speeds and move away from
outdated protocols to “PC like” speeds and
implement connectivity through DSL and
cable modems.

• Processors will update their communication’s
infrastructure to leverage the power and
capabilities of the Internet in a controlled and
orderly manner that adds value to their merchant
relationship and supports the payment function.

INGENICO

4.

WHY AN OPEN BANKCARD

PROCESSING ENVIRONMENT
IS NEEDED

• An open bankcard processing environment
is built upon open systems and industry
standard components, allowing it to be
upgraded and enhanced without concern for
proprietary and legacy elements. This also
reduces the operational and investment costs
for those providing network services.

• An open bankcard processing environment
positions financial institutions and processors
for today’s and tomorrow’s payments, making
it much easier to implement emerging
tender types.

• An open bankcard processing environment
allows the user to quickly introduce new
services and products or to quickly enhance
existing ones with new features.

• An open bankcard processing environment
positions financial institutions and processors
to seamlessly support multiple vendor
terminals.

• An open bankcard processing environment
allows manufacturers to quickly adapt
technology that has been proven in other
industries.

• An open bankcard processing environment
is simpler to implement, operate and support
than a proprietary network.

• Industry standard technologies lower a
manufacturer’s cost of bringing product to
market while ensuring the ability to upgrade
their systems later as new features are made
available.

• Industry standard technologies and open
development platforms enable processors,
financial institutions and ISOs to apply EFT POS
solutions to other markets that have similar
needs, thus opening new markets and revenue
opportunities.

• An open bankcard processing environment
provides ISOs, processor and financial
institutions with the ability to differentiate
themselves by leveraging industry standard
development systems and tools to enhance
their systems and services.

Open Platforms

Open Platforms is a committee that is part of
GlobalPlatforms and STIP consortiums. The group’s charter is
to develop standards for applications that are interoperatable
between EFT POS terminals, cell phones, PDA, vending machine
card readers and any other device in which a transaction occurs.
Ingenico chairs this committee.